Basic economic 101.

sourced and googled from:
econlib.org/library/Topics/College/supplyanddemand.html
and
investopedia.com/university/economics/economics3.asp

basic academic economics teaches that producers will supply more volume when price is higher than usual, and vice versa consumers will demand more volume when price is lower than usual. This might be true if market is open, free and efficient. Unfortunately for open public, they believe this to be the case and have forgotten who really drive the price. Neither producers, nor consumers, but instead they are the facilitators that facilitate producers, consumers, investors speculators, and also other facilitators.

Basic economics also teaches that supply requires time to react to demand that often requires instant filling. This is true in real trading for goods and services. For financial markets? who really supply and demand the instruments being traded on a chart?

Economic theory says that the price of something will tend toward a point where the quantity demanded is equal to the quantity supplied. This price is known as the market-clearing price, because it “clears away” any excess supply or excess demand.

this may be the case, though. but it is not that straight forward, simple.

the saying "trend is your friend" is absolutely true. but for whose interest? for our interest? or for the predators?
lol..... so whoever is naively believing that "trend is our friend" wholeheartedly is the prey.

again, price moves to clear away any excess supply or any excess demand, be careful price moves to clear away the "excess", not the supply and the demand itself - this alone is enough of a basis to create a logical approach to "speculating" an ever-moving price

Beyond Technical AnalysisTrend Analysis

Penafian